Says Marico's CEO (nature care division) Shreekant Gupte:``The aim is to keep the new brand vibrant. This is the key issue at the moment and we want to make sure that the brand does not lose its current status in the event of changing hands between two companies. We plan to first do some work with the consumer of Oil of Malabar on how best can we grow the brand.''

Marico plans to grow the brand in terms of marketshare and penetration during this period, leveraging on the company's expertise to purchase raw material in a cost-effective manner.

Oil of Malabar is the "second brand" for Marico after flagship brand Parachute. In the next one-two months, Gupte said that Marico will carry out an in-depth study as to what the brand's strengths and weaknesses are and the quality of its distribution with the quantity of the same already in the know. Subsequently, the company will formulate a strong strategy on its coconut oils portfolio.

Oil of Malabar has a strong rural bias. With an overall market share of 3.2 per cent, the brand has a significant presence in markets like Karnataka, Maharashtra (excluding Mumbai), North-East, Punjab and Madhya Pradesh.

The company, says Gupte, plans to grow the brand by firing at both ends of back-room and front-room operations. As an analyst who tracks the company puts it: The company is expected to inject into the brand some of Marico's back-room strengths. For instance, the company is strong in the knowledge on the industry cost structure-on buying the raw materials (copra) at the lowest cost and to be able to produce the best quality at the lowest cost.

This is expected to translate into a higher market share for Oil of Malabar in the near future, say analysts. While this will be part of the back-room initiative, the company will also fire on the front room initiative to grow the brand through promotions. However, it is too early to spell out the same, says the company.

Marico announced on Friday that it is acquiring "Oil of Malabar" coconut hair oil from West Coast India. The brand has a distribution reach of 1,60,000 outlets all over India including about one lakh outlets in rural areas. The brand has a significant franchise in South India with a share ofeight per cent. Marico leads in the coconut oils market with a share of over 50 per cent, with leading brand Parachute clocking a volumes growth of 21 per cent in the first half of 1999-2000 over the corresponding period last year. u